SAIB ordered to pay SAR 660 mln extra zakat levy

Saudi Investment Bank (SAIB) said it would have to pay additional zakat claims of SAR 660 million for the years 2003-2011 and for 2013, after the zakat authority applied a new accounting method to banks' long-term investments.

The Saudi General Authority of Zakat and Tax (GAZT) informed the bank of additional zakat demands worth SAR 660 million, above originally estimated figure -- the difference being attributable to the application of a new interpretation by GAZT.

The bank said it has challenged the decision and awaits GAZT's reply.

All banks operating in Saudi Arabia are subject to the same interpretation, and some of them have yet to announce additional demands applied to them.

SAIB said it has not allocated any provisions for the additional claims.